Category: Forex

Forex trading news is part of the Traders-Paradise website. Here you’ll find a valuable explanation about the Forex trading and investing strategies, analysis, predictions.

Forex market or shorter FX is the market where different national currencies are traded. It is the largest, most liquid market in the world. Also, it is an electronic network of banks, brokers, institutions, and individual traders.
If you want to know more about trading forex and the Forex market as a whole, you’ll be the regular visitor of the Traders-Paradise website.

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We have free Forex guides that cover how to get started, support you to make your first trades. Moreover, Traders-Paradise outlines how to create a long-term trading plan for long-term success.
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And Traders-Paradise gives you an insight on how to start. guides you through the registration process. Our team will teach you how to start forex trading with little money, how to avoid traps of trading. Our posts are for all of you who know nothing about the Forex market but at the same time, for those seeking advanced and rare techniques.

What else will you find here?

Most important news about forex trading and investing. But our primary goal is to show you how simple is Forex trading and investing.
Join us, follow us, to become successful traders and investors.

Profitable Forex Trading By Using Two Approaches

Forex is short for foreign exchange, but the actual asset class we are referring to is currencies.

By Guy Avtalyon

If you want to be a profitable forex trader and have profitable forex trading, you have to follow some rules. You have to either win more often than you lose. The must is to win more on each trade than you lose.

Or better yet; do both.

Doing both is truly the hallmark of a professional trader. It can be very tricky though. As you are a new trader, it is probably best to focus on one approach. See where you can go from there.

I want to show you the ins and outs of each approach and help you decide which method suits you the best.

What is the relationship between the win rate and reward ratio in forex trading?

Before everything, you have to understand the relationship between a trader’s win rate, their reward ratio, and profitability. Assuming a trader risks an average of 10 pips on a trade to make 10 pips of profit. They will need to get 50% of their trades right in order to breakeven. Only if they win more than 50% of their trades, then we can speak about profitable forex trading.

What happens if you risk 10 pips to make 20?

You are trader forex trading with a positive reward ratio and therefore you will not have to win as many trades to breakeven or turn a profit. The opposite is true for a trader who trades with a negative reward ratio e.g. risks 10 pips to make 5. Such a trader will have to win more than 50% of their trades to breakeven and even more to turn a profit. There is an inverse relationship between a trader’s win rate and reward ratio. The larger your reward ratio, the fewer trades you have to win, and the more trades you win, the less you need to win on each trade.

What is profitable forex trading?

Forex trading with a positive reward ratio is a good place to start as a beginner. Why?

Because chances are if you are just starting out, you don’t quite yet have a talent for accurately predicting markets. Say your goal is to make twice as much as you are risking on a winning trade. We have to do some math. If you have such a goal, then your breakeven rate drops all the way down from 50% to 33% and any wins above 33% are pure profit.

If you aim for 3 units of risk (3R) on a profitable trade, your breakeven requirement drops even further to 25%.

This advice is offered by market makers with educational background. This advice is reliable, but what they ignore to tell new traders is that it’s actually harder to make 2 x risk (2R) than it is to make 1 x risk (1R). Anyway, this approach is still a great place to start as a new trader, we just believe in an open and honest approach to forex education.

What is forex trading with a positive win rate?

Trying to score profitability via a positive win rate isn’t the best idea for new traders, because you are not yet experienced enough to get the market right more than half the time. Aiming for one unit of risk in profit has a higher chance of success than aiming for two. The other option is trading with a negative reward ratio, such as aiming for less than a single unit of risk on a profitable trade.

But there is the problem with trading forex with a negative reward ratio: the more your reward ratio drops, the more trades you need to win to turn a profit. If for example, you only aim for half a unit of risk on a winning trade, your breakeven rate rises from 50% all the way up to 66.67%. Then again, there is a higher probability of profitable forex trading and success on trades with negative reward ratios.

Automated systems and forex signals

When looking at automated systems and forex signals, you often see systems that appear great because they are forex trading with extreme negative reward ratios. These systems will risk a hundred pips or more in order to make 5-10 pips. This can work for a long time, but eventually, volatility picks up and the stop losses start getting hit. Every stop-loss that triggers wipes out a bunch of winning trades and you start seeing sharp declines in the system’s equity curve. The characteristic of these systems is win rates above 90%. If you see a system with a win rate that high, look a little deeper. You’ll like to examine how exactly this unbelievable win rate happens.

Currency is known as an “active trader” opportunity. This type of opportunity suits brokers. That means they earn more due to the agility that accompanies active trading but it is also promoted as leveraged trading. Hence it is easier for a forex trader to open an account with a little money than it is required for trading stocks.

How to use forex trading as a hedge

You can use currency trading to hedge your stock portfolio too.

For instance, if some trader builds a stock portfolio in a country where there is potential for the stock to increase in value. But there is a downside risk in terms of the currency. For example, you might own the stock portfolio and short the dollar against another currency such as the Swiss franc or euro.

This means, the portfolio value will increase, and the negative effect of the declining dollar will be neutralized. This is good for those investors outside the U.S. who will eventually repatriate profits back to their own currencies.
With this profile in mind, this suits the best day trading or swing trading.

The other strategy of trading currencies is to understand the fundamentals and long-term benefits.

It is useful to a trader when a currency is trending in a specific direction. That means it offers a positive interest differential. Hence, it provides a return on the investment plus an appreciation in currency value.

This forex trading strategy is a “carry trade.”

Good timing is the essence of profitable trading. In both cases, as in all other trading activities, the trader must know their own personal attributes. In order not to violate good trading habits with bad and impulsive behavior patterns.

7th October 2018
Can you become a millionaire by trading forex?

(Updated October 2021)

3 min read

Can you become a millionaire through forex trading? Do you know someone who has never dreamed of being a millionaire?

Everyone can see the lives of celebrities and millionaires every single day. Who wouldn’t like the same lifestyle, expensive cars, luxurious houses, swimming pools, parties…

All that desires, all that false matters, false emotions, come from media advertising and TV.

OK, not everything is false. But that causes the other question: can I be a millionaire trading forex?

Yes, you can become a millionaire trading forex.

>> Check out this Become A Millionaire Calculator

But you have to know it is not easy like you see on the internet advertising and TV.

It depends on how much money you start trading.

If you start with $5,000 and make 10% of your capital each month, yes, you will be a millionaire after 5 or 6 years. Just 10% of your capital each month can make you a millionaire.

And if you start with $100K you will be in 2 years. You can’t do that in any other industry.

Tell me, where you can start at $5K and become a millionaire in a few years.

But remember, if your dream is to become indecent rich in a week or a month, forget about the forex. Go far away from forex.

Because you will lose all your money, your car, your house and in the end, your family.

This reality is hidden from you.

Yeah, I know, every broker will tell you tales about doubling your money overnight.

Hm!

True is that they prefer you to lose your money. As soon as possible!

Contrary, if you follow the correct way for a few years they will not see any considerable profit from you. Over the route of several years, you will be the one taking the true profits!

And they don’t like that. This is not in their best interest because 90% of brokers are just market makers and have no relation with the market and banks.

They create a virtual market for you and from time to time let you trade and they make money when you lose.

And they lose when you have winning trades.

Their interest is to make you lose as soon as possible, then they try to motivate you to add more funds to your account and lose your funds more and more.

If you really want to be a millionaire in the forex market forget about making money on the easy and fast way. Such thing like cold cash in the forex market does not exist. You will need time to learn how to trade forex. To learn how to develop a strategy with more than 60% probability to win. You will have to learn about money management. Actually, you should start trading on a demo account.

Trading is art.

People trade to make money in forex but forex trading is not like making money.

You must understand the way of making money with the positions you are opening and the reasons behind it.

That’s why you have to be patient!

Trade for 2 or 3 months on a demo account. If you make success on a demo account, you can open a real account and start real trading.

But, if you don’t have success on a demo account then something is not right. Perhaps your strategy doesn’t respect money management rules. Or something else you are doing wrong.

After you see the mistake you can correct it and after that restart trading on a demo account until you get recurring success.

It is right to say that the Forex market is only for risk takers. It can’t be a permanent source of income but it can be a decent source of income. But only if you get the right guidance through the right adviser or build up your own knowledge to start trading with high precision.

If you are new to trading you can start with the small investment. And you have to keep revising your risk on the higher side to earn more.

This can be the right approach. But the most important is that you should have the right guidance from the best signal provider.

For everyone who asks: Can I become a millionaire through forex trading, there are two answers:

Yes, you can

and

No, you can’t.

Anything is possible in this world.

However, you will be faced with some challenges like finding a good broker that doesn’t cheat on you. Maybe this is the biggest one.

Forex brokers don’t let you grow your account systematically, because your profit is their loss.

And we spoke about this:

Forex is not a get-rich-quick scheme.

Currency trading is not an easy way of making money. It is the same with the stock trading and all the other kinds of trading and investments.

You have to pass some important stages before you become a millionaire.

There are two things that you have to do to become a millionaire forex trader.

First, you have to learn and master the trading skills. And you have to have a suitable amount of capital to invest in the forex market.

No one has never seen one single retail forex trader who has become able to become a millionaire through growing a small account.

There is no profitable currency trader who trades through the retail forex brokers.

You have to have enough capital to trade currencies through a bank account. And your capital has to be suitable enough.

You have to know that.

Of course, if you don’t believe this you can spend time and money on retail forex trading.

Unfortunately, it is not possible to start making money right after learning the forex trading basics and a trading strategy.

To become a pro: PRACTICE to master your trading skills & risk management analytical skills using a free demo account for traders

You have to consider something at first.

It is smart to have a source of income that supports your currency investment. You must have some revenue, that covers your expenses and gives you free time to sit at the computer and learn how to trade.

The lie is that you can make any money through forex trading and any other kinds of trading when you have financial problems.

If you think that you can learn to make money through forex trading within a short time, and become a forex trader who makes millions of dollars, I have to tell you it is not possible at all.

You can find so many false forex millionaires stories over the internet.

Don’t let them deceive you.

If you want to become a millionaire, first you need a good source of income that makes a decent amount of money that not only covers your expenses. But also leaves some money for your trading and investments.

Only then you can start learning how to trade.

You have to learn and practice until you become a profitable trader.

There are two ways to do that.

One way is harder. You have to follow too many trading strategies, robots, and time-frames, and sit at the computer for several hours per day.

This way will hardly take you to your destination.

The simpler and easier way is learning the Forex trading basics.

And then a simple and strong trading strategy.

You have to learn your trading strategy through demo trading. When you achieve success and make profit consistently for 6 consecutive months at least, you are ready to open a small live account and start practicing with it.

If you make a profit for 6 consecutive months with your live account, all you have to do is that you keep on trading with your live account to grow it.

3 of the most common patterns in Forex trading – Head & Shoulders pattern, Pin bar and Double Top / Bottom

How to use Head & Shoulders pattern:

Head & Shoulders pattern is an easy way to develop trading skills.
The first thing you must know is that Head and Shoulders is a reversal pattern. Meaning, when it’s uptrend, the price goes up, doing its shoulders and head patterns and then reverse for a downtrend.

Those are somehow easy to locate when using this image to see what we should look for in an actual chart.

In the image below, you can how it looks on a real EUR/USD chart:

How to use Pin bar pattern:

One of the most important candlestick patterns you should pay close attention to.
If a pin bar appears it means that there is a very high probability that trend may reverse or pullback. The pin bar is often called “Pinocchio” bar, and it looks like this:

How to use Double Top / Bottom pattern:

Often, if you see a double top like in the following image, it can mean there’s a downtrend on the way.

Forex trading is an investment opportunity.

It isn’t a full-time job. You should already have an income to become able to invest in the currency market.

Turning a small $5,000 account into a million dollar account is possible theoretically.

It is theoretically possible to turn $5,000 account into a million dollars. But if you want to become a millionaire forex trader you have to have a good backup.

When you become a profitable forex trader, you’ll have enough money to open a professional live forex trading account to trade professionally and earn real wealth.

For example, 1000pip Builder’s automatic trading system aims to target 350pips per month. Usually that should be enough, especially for the new Forex traders.

As you can see, it requires both time and money, commitment and persistence, but ultimately it pays off.

Or you know a different story?

6th August 2018
How Much Money You Can Make In Forex Trading?

3 min read

Are you tired of being scammed, fake script?

Do you wanna earn?

But you want secret strategy 100% working, real and very legit.
Yeah!

How much money you can make?

Can you become a millionaire through Forex trading?

Well, the answer is YES and NO.

I am not saying that it is impossible to make millions with Forex. It is.

But if you want to turn a $500 or even a $5000 account into millions, then I have to tell you that you will have a hard task.

Yes, I know. You’ve heard of traders making millions in the financial markets.

But it is not good to compare yourself with them.

Why is that?

Because you’ve got different account size, risk affinity, risk management, trading strategy, and etc.

So is it possible to get rich trading forex? Absolutely!

But you need to keep some things in mind before you try it. Many people want to get rich trading forex and there is no doubt it offers the potential to do so but most fail. Forex trading is risky we know that already but with risk goes reward. If I want to explain how much money can you make from forex trading I have to do it with objective measures.

Just statistics, numbers, and the cold hard truth.

Are you ready?

In your trading the most important thing is metric. If you only win 20% of the time and you can have a 1 to 2 risk to reward on your trades, you will be a consistent loser.

It is obviously your risk to reward isn’t the answer. What else can be? Your win rate maybe?

Let’s see.

You have a 90% win rate but if you lose $0.95 for every dollar you risk, you will also be a constant loser.

So, where is the catch?

Your risk to reward and win rate is meaningless on its own. You must combine both your win rate and risk to reward to establish your profitability in the long run.

This is known as your expectancy. That will give you an expected return on every dollar you risk.

Mathematically it can be expressed as:

E= [1+ (W/L)] x P – 1
NOTE:
W means the size of your average wins
L means the size of your average loss
P means winning rate

You have made 10 trades, 6 were winning and 4 were losing trades. That leads you to your percentage win ratio is 6/10 or 60%.

If your six trades brought you a profit of $6,000, then your average win is $6,000/6 = $1,000. If your losses were $3,200, then your average loss is $3,200/4 = $600.

Apply these to the expectancy formula:

E= [1+ (1 000/800)] x 0.6 – 1 = 0.35 or 35%.

This means, the expectancy of your trading strategy is 35% and your trading strategy will return 35 cents for every dollar traded over the long term.

On the other hand, most of the casinos work 24 hours a day, 365 days a year.

The reason is the more they play, the more they make. And it’s the same for trading. You must PLAY more to WIN more.

The frequency of your trades matter.

However, the more trades you put on, the more money you will make (while having a positive expectancy).

Let’s see how important this is.

You have a forex trading strategy that wins 70% of the time, with an average of 1 to 3 risk to reward.

But it only has 2 trading signals a year.

How much money can you make from this forex trading strategy?

Not a lot, am I right?

Well, you might even lose in that year since there’s a 9% chance of losing two trades in a row.

As you can see the frequency of your trades is important but it’s not enough to determine how much money you can make in forex trading.

There are a few more factors that play a crucial role.

I’m sure you heard a lot of stories where a trader took a small account and trade it into millions within a short time. But you have to know that for every trader that attempts it, thousands of other traders blast their account.

Let’s not treat trading as get – a – rich – quick – scheme. Treat it as a business you’re looking to grow it constantly over time.

Let’s say that can result in 20% a year (on average).

If your account is a $1000 you’re looking at an average of $200 per year.

Your account is a $1m, you’re looking at an average of $200,000 per year.

Or your account is a $10m, you’re looking at an average of $2,000,000 per year.

Let’s say it is the same strategy, same risk management, and same the trader. The capital of your trading account is the only difference.

No matter what strategy or system you’re using, the bottom line is you need money to make money in this business. Period!

Because your bet size determines how much you can make.

How?

The bigger you risk, the higher your returns.

Let’s say your trading strategy has a positive expectancy and trigger a return of 20R per year. And you have a $100,000 trading account.

How much can you make from your trading?

This depends on how much you’re risking per trade.

If you risk $1000, you can make an average of $20,000 per year.
Or if you risk $3000, you can make an average of $60,000 per year.
And if you risk $5000, you can make an average of $100,000 per year.

This is the same strategy, same account size, and same the trader.

The only difference is your bet size (or risk per trade).

But…

If your bet size is too large, the risk of screw up becomes a real possibility. That is to say, you have a higher risk of detonating your trading account and it will reduce your expected value.

So, how much money can you make from Forex Trading?

However, it depends do you withdraw or compound your returns.

If you make an average of 20% a year with a $10,000 account, after 20 years you will have $383,376.00.

But if you withdraw 50% of your profits each year you will make an average of 10% a year and after 20 years you will have $67,275.00 on your account.

So, It is clear enough that compounding your returns will generate the highest return.

But is it workable or not depends on how you manage your trading business.

OK, you’ve learned the main factors that define how much money can you make from forex trading.

Now, let’s see how to use this knowledge and figure your potential earnings.

Example:

Trading expectancy – 0.2 (or 20%)
Trading frequency – 200 trades per year
Account size – $10,000
Bet size – $100
Withdrawal – None

Now implement this formula: Trading expectancy * Trade frequency * Bet size.

And you will get:

0.2 * $100 * $200 = $4000

You see?

To sum up, you can expect to make an average of 40% a year.

And the answer is, there’s no one factor that determines how much money you can make in forex trading.

You must look at these 5 and monitor and assess the success or failure of various processes
1. Trading expectancy
2. Trading frequency
3. Account size
4. Bet size
5. Withdrawals

Then implement formula: Trading expectancy * Trade frequency * Bet size.

In this way, you will have an objective measure of how much money you can make in forex trading.

Read this too: Best Forex Brokers UK FCA Regulated

Risk Disclosure (read carefully!)

31st July 2018
Entry Trading Strategies That Make It Easier – Forex Trading

2 min read

Entry trading strategies can be very complex but simple too. Forex traders have many activities working against them, and among them, the biggest enemy is – traders themselves. Basic mistakes, lack of planning and weak or ineffective strategies, are the major cause of high forex failure rates.

One of the trader’s mistakes is entry trading strategies complexity.

The best entry strategies are those that are simply designed and simple to perform. The biggest enemy of effective trading is complexity. You should never identify complexity with quality. If you think the more moving parts in a strategy can give you the greater chances of profit, you are totally wrong.

For example, you have an entry signal that has a 10 point checklist to trigger. And you want to apply that in live trading on a minute chart.

What are the chances that you can keep track of all 10 checklist criteria?

If you can’t identify that trade in real time, you will gonna miss it.

And it will cost you money.

What this means is, complex strategies lead you to missed trades.

Your forex entries will be more effective if you keep them simple. Stay stick to this wisdom and you will be able to create a durable forex strategy.

The second enemy in your entry trading strategies can be the timeframe.

Jumping from timeframe to timeframe in order to find the perfect one is not the most effective way. Also, many traders choose the first one that grabs their attention – wrong too. Forex time intervals are a personal choice connected with trader’s character, personality, and nature.

If you are impatient you would like to see your trade spread rather soon than later. And you wouldn’t wait for trades that take a long time. That means that faster timeframes suit you better.

But faster timeframes also means you have to stay more engaged so you don’t miss key setups. And be careful, every extra second is a chance to do something emotional, like move a stop or take profits too early.

The faster the timeframe, the less chance for mischief.

But maybe the slower timeframe better suits you.

Maybe you enjoy to plan and manage the trade with less furious tempo. Slower timeframes give you time to think.

That can be a great advantage if you like having time to analyze.

Especially if you want to put on more than one trade at the same time.

Slower timeframes may give you more time to manage trades and perform them well. With longer time frames, you have more spare time.

No timeframe will ever be perfect.

If you choose well, it can be a good match for your trading style. And most importantly, you’ll have taken a step towards your own Forex strategy.

One of the most important aspects of any trade is its size.

This represents the amount of money in initial size and in total risk.

General truth in trading is to keep your risk small and constant.

Where is the point if you win on 3 trades making $400 each and if the fourth one loses $5000.

Forex is the market with the greatest ability to sizing money risk. But only if you plan ahead. If you want to risk $1000, make sure you size your position to risk $1000. Don’t try to sensate your way into a trade.

Decide up front the maximum it will cost if it goes against you.

Sizing control is a fantastic attribute of the Forex market.

But this attribute can be a benefit if used in the right way. You have to plan ahead to cap your risk at the right level. If you do this right, your Forex entries will be more in good shape.

And start with fixed outcomes. A fixed outcome is a pre-set plan for how you will exit a trade and usually it comes in as stop limit or profit taking the order. A fixed outcome is a pre-set plan for how you will exit a trade and usually it comes in as stop limit or profit taking the order.

The fixed outcome will reduce the risk of changing your mind and moving the stop to take on more risk, your profit aim will be set and you can relax without wondering when to take profits. It’s a good habit in case something drags you away from your screens. Your trade can function without you right from the start. Fix your outcomes in order to cut down impulsiveness in your trading.

Forex strategies can be a great deal simpler and more effective than many traders make them.

If you have not yet mastered a trading method, you will not be able to get good entries into the market. Thus, the first step is taking some time to get proper training in an effective trading strategy. Find some good one!

And good luck!

Risk Disclosure (read carefully!)

26th July 2018
Forex Trading is Profitable. Right or wrong?

2 min read

Forex trading is profitable but the market isn’t endless, you have to know that.

The size of your trade has an important impact on how you can bring a trade out.

Don’t look at the percentage of what a so-called pro-trader does. People like to think in percentages way too much.

Percentage of what?

When you start, you can have someone who would be your ideal or paragon. But you always have to keep in mind that such trader is already experienced in trading.

She or he does some things spontaneously, and you are the one who just stepped in on this scene. But if you’ve mastered some trading skills and have tested them well on some free demo account, you may have even one advantage.

The experienced traders have more money, it is a blessing and a burden at the same time. But you can be more flexible to trade with high precision very close to how the market moves.

What I want to say is, you should never underestimate a “small” position. Forex trading is profitable even in that situation.

For the FX market, you can be small fish.

But that “small fish” can make a couple of hundred USD per pip. Is it good enough for you? Well, that’s why comparing percentages without comparing the actual pot is an unnecessary exercise.

But it isn’t easy. Hard and smart work lies behind it. Of course, you have to involve a bit of luck to find the right stocks, right things while your motivation is still on the top. But when you make any success, you will see it is worth it.

But you have to be dedicated to trading in order to be able to trade when markets move the most. If you live in a European time zone it is from the early morning to the afternoon. But if you live in some other part of this lovely planet I would recommend to your attention, one of my older posts.

Some traders said: I’m trading short term on the 1-minute candlestick chart.

Take this as a recommendation:

Average holding time depends on what the markets offer you but it is rarely under 6 minutes and rarely over 20 minutes.

Stay focused on reversal signals and have pay attention to good ones and fake-signals apart. Support/resistance areas play a role but you need to practice to be good at it.

You have to treat trading as a profession or a business.

Only in that way success will come.

Why I’m saying this to you?

I have a friend. Forex trading has been an expensive venture for him, indeed. In his first 2 years of trading, he lost $30k. He almost went bankrupt because he was naive and greedy. His main problem was, he entered at the wrong time and exit at the wrong time. No matter what he did he was always on the wrong end. At that moment we couldn’t talk about how forex trading is profitable, right? This improved drastically when he found his own method. (And maybe this is the secret of any successful trader.) Now he has been profitable for over 15 months.

Forex trading is profitable but not for everyone

But I’ve seen a numerous amount of people lose everything in trading.
Hundred and thousand times you should ask yourself:

Why do I trade? To become rich? Is it a hobby?

Do I love it or I hate it? Is forex trading harmful to me?

Why I am forcing myself to all of this? Just for a chance to be a member of the profitable 5% club?

Did you ever hear the saying: “If you don’t know who you are, the market is an expensive place to find out.”

And the most important question is: Is trading really worth the effort invested?

Trading attracts mostly because of the freedom it provides.

Trading Forex isn’t a “get rich quick” method.

With constant profits in order to make enough money not only to live but to build up a constant surplus.

So, you can move on with your plans and plan your life. Maybe your focus on how much money you can make per year isn’t the best.

You may think you can see better, you know better and you can believe in that. But that is a great paradox and tiny line.

If you cross it, it can be the biggest tragedy. In every single moment, you have to take care of risk control.

It doesn’t matter what you see or you think you know.

Risk control! Double-check! Opened eyes! Use the excel.

Sometimes, even the things you wrote before can be very helpful. Having some downloaded system is useful but money management is KEY to success.

To gain knowledge of how to make a profit is much much more than what you can learn from a job in the corporate world.

The knowledge has to be the goal.

Yeah, I know. Time is money.

Forex trading is profitable for me.

Is it worth it? Yes!

Should you continue trading? Yes!

Should you continue with your studying? Yes!

Should you continue looking for a job? Yes!

Can you manage to do all of these things at the same time? It is up to You.

The main factor for success is your permanent education and training. You have to believe in yourself and find what works for you.

The only thing that brings you to your failures may be your ego.

And if you aren’t ready to keep going after a series of losses, Forex probably isn’t for you.

Risk Disclosure (read carefully!)

24th July 2018
Trading Forex – How I made $10,000 on a trading platform?

Trading forex can be very profitable and you can earn money quickly. Here is how.

By Guy Avtalyon

My trading forex story begins like this: I was so tired of “opportunities” that end up taking nothing but a lot of time and money out of my pocket while gaining nothing except lost time and money. Don’t get me wrong, I was willing to put my free time into something that is real.

The forex market offers more opportunities for quick financial success and financial ruin too than almost any other market. The crowds have always been attracted to it. They include speculators, trading novices, retirees, and professionals looking for a way to get out of debt, increase the excitement in their lives, or simply get rich real quick. I’m one of them.

If you have a computer and an internet connection, you can trade forex from anywhere in the world, it is the best home-based business of the 21st century. But the problem is that most people don’t know how to trade forex.

Learning forex trading is not easy

It requires time, patience, and sustained effort. Most people lack the time to learn forex trading. I wanted to become rich. And the first lesson I got was: I have to fail and learn from my failures. I know that most people fail but do not learn. The skills of the trade aren’t like taking a diploma and slowly walking on the path of your career. In trading, when you “advance”, you don’t even know if you’re making progress in the right direction.

When the results show otherwise, it’s so hard to admit that the past months or years of “progress” wasn’t that at all. And after admitting that to yourself, you need to learn from it. You have to put your ego aside. Trading without emotions is a MUST.

Have you ever heard of someone turning a $100 starting capital into $100,000? Maybe you have. Well, such stories were and still are very rare. You really must have the full picture.

I have to tell you some big truths.

Trading forex is not a shortcut to instant wealth.

The old saying “It takes money to make money” is a precise one, Forex trading including. What would you have to do to start at $100 and have a trading account worth $10,000 a year later?

Almost any pattern of gain or loss is theoretically possible on the forex. But return on investment (ROI) calculator shows you that to accomplish this, your annual rate of return on investment needs to be 9,900%! If you enter and close out one trade every day of the year, the average profit on each trade would have to be at least 464 percent on those 100 bucks! You’d have to more than quadruple your money every day to come even close to $10,000 at the end of a year.

Does this sound like something that’s happening in the real world?

There’s something so deceptively rational. The idea to start with $100 and turn it into $10,000 needs to be shown into return rates to show how absurd this really is. It may be theoretically possible, in reality, it’s no more likely that your cat is starting to fly.

No matter what you were told, you have to know that your starting capital is the place to start. Having a good starting capital can help you to set your trading goals, define your risk management, and adapt your trading system and position management around your starting capital.

For many traders, a starting capital of $10,000 should be a good starting point. Depending on other factors such as leverage you can start making profits for as little as $10,000.

The math for trading forex

Assume you start trading with $30,000 and you can risk on each trade is $300 (1% of $30,000). You use 4:1 leverage, which gives you $120,000 in buying power (4 x $30,000) and utilizes a strategy that makes you $0.21 on winning trades and you lose $0.12 on losing trades.

A good trading system will win 60% of the time. Your average is 5 trades per day, so if you have 20 trading days in a month, you make 100 trades per month.

60 of them were profitable: 60 x $0.20 x 2300 shares = $27,600

40 of them were unprofitable: 40 x $0.13 x 2300 shares = ($11,960)

Let’s say your cost per trade is $20 (to get in and out). Your commission costs are:
100 trades x $20 =$2000.

If you pay for your trading platform or exchange entitlements then those fees are added in as well.

That means, you can make approximately: $15,640 – $2000 = $13,640 or about a 45% return per month.

Return on a single trade

As your account grows, your position size and your income will become larger.

Thanks to the availability of leverage, forex traders can make a return on a single trade. When multiples of the margin they used to open the trade. But, leverage is a double-edged sword. It can also mean big losses. Reliance on excessive leverage as a strategy typically leads to the destruction of your account capital in the long run. This is because it only takes one adverse market move to drive the market far enough and trigger losses. You need to view forex like you would any other market and expect normal returns by using conservative amounts of no leverage.

Websites that propose big and fast returns, to start with $100 and turn it into $10,000 in a short time, or imply that you can somehow get rich quick on the forex starting with very little are openly speaking frauds.

What you can do?

In the last few years, many pro traders have started their own forex signals services that provide trading signals to their subscribers via email and SMS.

Copy the trade of these pro traders onto your own account the instant they are made.

Now, what this means is that the pro trader is going to do all the market analysis, decide which currency pairs to trade and when to enter and exit the market. You don’t need to do any of the stuff above.

Follow elite traders when trading forex

At the same moment when pro-trader makes the trading software will instantly copy that trade onto your trading account.

So, if the pro trader makes a winning trade, you also make a winning trade and if the pro trader makes a losing trade, you also make a losing trade.

Try the best forex signals service in your opinion on your demo account. Install the trade copier software and start copying the trades made by the pro trader.

At the end of the month, evaluate the performance of the forex signals. If not satisfied, go for a refund. After several tries, you will be able to find a good forex signals service.

Most pro traders make around 1000 pips per month. 1 pip on a standard account is equal to $10. 1000 pips per month mean making $10,000 per month.

Voila! You earned your $10.000!

But before all, make sure you test the signals for at least two months on your demo account before you start trading live.

And you should know some basics of forex trading. You can learn that online for FREE. Most of that information is available for FREE.

Good luck!

22nd July 2018
What Are The Best Days For Forex Trading And Why?

Trading time, the market is open for five days throughout the week.

By Guy Avtalyon

The best days for trading Forex… I’ll stop here and give to you some explanation. Most forex traders are more successful during the late US, Asian, or early European trading sessions – essentially 2 PM to 6 AM Eastern Time (New York), which is 7 PM to 11 AM UK time.

If you are a newcomer you would like to trade every second of every day. We know all about that. Our case: We figured the more active we were, the more money we would ultimately make. It so-called addiction to trading! (more about this kind of addiction you can find HERE) Frankly, we all are probably yet, but we know how to handle it. We hope.

But after many years we figured that making money in this business isn’t about quantity, it’s about quality. So, you must find the best days for trading Forex.

Well, you decided to become involved in Forex trading.

Good!

But you must have taken to attention the fact that market volatility does not remain constant during the day. Proper timing may be the crucial aspect of successful short-term trading.

You have to be sure when are you going to trade. When is the best trading time? Because engaging the marketplace during periods of maximum participation increases the efficiency of trade execution. As well as the probability of recognizing the opportunity.

The market is open for five days throughout the week. But volatility is subject to change during any given time span: a month, a week, or a day. If you are aware of patterns, according to which this volatility changes, you can modulate your trading strategy. And you’ll be able to take the maximum profits from trading are gained.

OFC, if you know which trading time is producing favorable setups, you’ll know whether to stay on the sideline or begin searching for new opportunities.

That’s the goal!

If you trade the 5 or 15-minute charts, it is important to have many varied parts of sessions throughout the day. But if you want the switch to a higher time frame such as daily time frames, these sessions become less important.

But instead of concerning intraday sessions, let be more focused on the day of the week because the Forex market never closes, and the currency pair can open on Monday at a different price from where it closed on Friday. It is called the weekend gap. If you aren’t cautious, you can get grasped on the wrong side and not even your stop loss will save you.

But let’s go to the object of this post, what is the best trading time.

The most quality setups realize between Tuesday and Thursday. The middle of the week is the “sweet spot” for finding profitable ideas because this is the time when most action happens.

Why the best days for trading Forex is the middle of the week?

On Tuesday, volatility is 20 to 30% higher than on Monday. But it is followed by Wednesday’s moderate decrease, which occurs due to swaps. This can be described as an exchange of assets between traders. What happens at a certain predefined trading time.

During the swaps, traders who keep holding their positions agree to exchange their investments or financial instruments at a preset price. Sometimes, a triple swap is collected, as Wednesday evolves into Thursday, and traders keep their day’s positions open. Traders are getting back to work on Monday, after the weekend, so things move a bit slower. When the market opens on Monday, there’s a high level of uncertainty about what direction each pair will go on that week.

For this reason, try not to trade on Mondays. The only exception is if there is a highly favorable opportunity that you just can’t let pass up. Fridays are when traders begin to pack up for the weekend, they exit positions in preparation for their two days of rest.

The best days for trading Forex: Mondays and Fridays aren’t a time to relax.

It is the best time to analyze the market, update the watch list, and make yourselves ready for new opportunities.
Positions last from a few days to a few weeks, but they almost always include at least one weekend in the process. And it can cause a dilemma for most traders.

You must hear many tips on how you have to avoid holding positions over weekends due to gaps that can form on Monday. But if you place a trade on Wednesday or Thursday, that’s difficult.

What are the best days for trading Forex?

You can do two things to protect your capital when heading during a weekend.

The first is to make yourselves aware of any events on the calendar. If you have Euro exposure on Friday and you see, for instance, it will be some referendum in Spain or elections in Italy over the weekend. It’s probably a good idea to exit the position. You have to be aware of when certain events are taking place. Even political.

The second thing you have to do is to make a decision based on where the trade is in its lifecycle. Is it trading near your entry or are you up 150 pips by Friday’s close?

What is smart to do?

In the first example, you have a 100 pip buffer between current prices and your entry. Sticking with the position could be the right move.

In the second example, you don’t have a buffer. If the pair opens next week near Friday’s close, chances are you’ll be able to secure the same entry

Optimal time in which to enter or exit a given market is the exercise for traders. For some traders periods of enhanced liquidity and volatility may be desirable, others may see plenty of risks.

Individual capital resources, risk tolerance, and style of trading must be taken into consideration when deciding on the best time of day or week to trade

13th July 2018
Forex Scams and How to Avoid Them

There is a high level of possibility to get trapped in some Forex scams. Here is how to recognize them and avoid falling in them.

By Guy Avtalyon

Forex scams are the reality but you must know how to avoid them

The Forex market is among the most active trading markets in the world. Hence, participants are ranging from multinational corporations to large banks, to speculators, to governments, and a small fraction of individual professional traders. Even more so than other markets, investing in Forex can be very profitable.

However, there is a risk involved in these investments but we’re not talking about normal risk in any type of investment. I’m talking about Forex scams, where the investment is simply an obvious case of fraud. We all can find on the internet how individual traders complain through forums about how their brokers screwed them.
The forex market involves very active trading of over $1 trillion each day. Futures and currency options put the trading at closer to $5 trillion daily.

Still, there are a lot of opportunities for many forex scams over promises of quick fortunes through “secret trading formulas” or algorithm-based “proprietary” trading methodologies.

What are Forex scams?

For example, signal sellers. One of the challenges a novice forex investor faces is determining which operators to trust in the forex market and which to avoid. The signal seller is offering a system that purports to identify favorable times for buying or selling a currency pair. They all claim they want to provide information that leads to favorable trading opportunities. But signal sellers usually charge a daily, weekly, or monthly fee for their services. Otherwise, how they can earn?

How does typical work?

The scammer gains the trust of his/her victims with a promise of a great and quick profit. Indeed, it’s possible to make a big profit by trading on the Forex market, but not in the way that the fraudster promise. The scammer takes money from the client (actually the victim) and claims that he/she will earn big profits by trading currencies on Forex. In the beginning, the profit is big. But this profit was not realized by scammer’s trading on Forex. The scammer uses the money of newer customers to pay promised earnings to previous clients.

But, victims of fraud, thrilled with good earnings, often decide to invest even more money with the fraudsters. In addition, they often recommend a good opportunity to earn money for their friends so that the network of clients is rapidly increasing. The scam ends after the inflow of new customers ceases to exist or be diminished to the extent that the fraudster is no longer able to pay good earnings to older clients. Then the victims realize that they were deceived and that had lost everything they had invested.

How to identify Forex scams?

The easiest way to identify a fraudster is if he/she requires a client to deposit money in cash, bypassing payments through the bank. Real Forex brokers work solely payments through banks. Real Forex brokers provide customers with access to the market where the client decides which currency to buy or sell, depending on which trading result is. Additionally, every client at any time of the day or night can access to the account and can track the status of his account in real-time.

How to avoid Forex Scams?

Since you are into currency trading to make money, you must know how to avoid Forex scams. The information here will help you a lot on how to avoid Forex scams.

Whenever you are dealing with some site, be cautious, and don’t trade with websites that say you that Forex trading is simple. The scammers capitalize on the human nature of wanting things quick, easy, and convenient. Method to avoid Forex scam is for you to keep away from any website that claims to have a secret trading system. Don’t ever fall victim to these incorrect offers. A lot of Forex traders believe the fact that there is a holy grail or secret trading method that will make a profit for them overnight. Reading reviews of experts will help you to find the broker that fits your Forex requirements. Reviews are a good solution anyway, they can help you to recognize those that can bankrupt soon or save you from scams. The truth is that you need a lot of hard work and patience to succeed in Forex trading.

A lie or truth about Forex?

If you’ve ever searched by some browser for the word “Forex”, you weren’t surprised that some sites write about Forex fraud, often placed on the first page. You will find that Forex is a big fraud and legalized robbery. The “big”, that is brokers and large financial institutions, have teamed up to take the money from the “little ones”, that is ourselves.

We can completely calmly say that Forex is no fraud and it will never be.

So, the Forex market is really great as the potential for earning. Forex trading is real, and Forex at itself is not a scam. People are something else. Some people will always find a way to cheat, deceive, dupe, swindle. That’s the nature of human beings.

That still does not mean the Forex is a scam, not at all. Everyone should be on the lookout for any potential on Forex and invest their money wisely.

If you have personal experience, share it with us and others.

9th July 2018
What is needed to trade on Forex?

Are you disciplined?

2 min read

What is needed to trade on Forex? To come to the answer we must clear several things.

CONCEPT OF FOREX TRADING

Forex represents the foreign exchange/currency market. The word forex itself is made of two English words: foreign and exchange and signifies the purchase of currencies from different countries.

Unlike other stock exchanges, Forex does not have its physical seat in a city. It exists in an electronic network consisting of large financial institutions.

Today, Forex is the largest financial market, which has a daily turnover of around $ 5.5 trillion a day.

You can complete this whole process online

The term currency market means the sale of one currency with the simultaneous purchase of the other. As currency pairs are traded, in order to profit from the shift in the exchange rate, you need to buy the currency that you think will strengthen and sell the other.

There is no need to wait for a growing market to profit. At any moment, one currency will strengthen in relation to the other.

The FX market is constantly creating opportunities for investment

What is needed to trade on Forex, the essential part

Since nothing concrete and tangible anything is bought and sold, this type of trade can be a little confusing. You should think that you are buying a part of the value of a country. If you buy a Japanese yen, you are buying a part of the Japanese economy that is in direct correlation with what the market thinks about the current and future health of the Japanese economy. Generally, the established exchange rate of the two currencies is a ratio that reflects the state of one economy in relation to the state of another economy (the state, the currency).

Forex is opened 24 hours a day, except on weekends, so that Sunday trading starts on Sunday from 21:15 CET and runs until Friday at 23:00 CET. During the day there are several time intervals that coincide with the working hours of the world’s largest stock markets.

Who trades on the Forex market?

Forex traders can be classified into two groups, hedgers and speculators.

Hedgers: governments, companies (importers and exporters) and some investors who are exposed to exchange rate changes.

Speculators: This group, which includes banks, funds, corporations, and individuals, creates artificial pressure on the course in order to profit from variations or price movements.

Basic terms

Pip
Represents a change in the ratio of the currency by one decimal. It is the smallest unit change course. Pip is the last decimal in a currency relationship

Stop and Limit – Orders
Often the trader wants to limit the loss in the position he has opened (in that case he sets the “stop” order) or wants to take profit at a certain level, which is acceptable to him (in this case he sets a “limit” order).

Long – Tremin used for the purchase order,
Short – tension used for a sales order,
Bid – bid price,
Ask – the price that is claimed,
Buy – Shopping,
Sell – sale,
Spread – the difference between the sale and purchase price,
Chart – graph
Time frame – time period,
Candlestick – Candlesticks show that emotion by visually representing the size of price moves with different colors.

What is needed to trade on Forex?

Before you start trading the currency, you need to open an account with a Forex broker. Our recommendation is that before you decide on trading on Forex, open a demo account with one of the brokers so that through the use of the platform, you will continue to monitor market activities and learn more.

Conditions for Success

You must have a good knowledge of technical and fundamental analysis, as well as managing your account. You should also know the psychological aspect of the trade and that you are disciplined. To be able to trade Forex successfully, there is a whole world of education, really extensive analysis and countless hours of tracking a very large number of relevant and potentially relevant information, all without any guarantee that the right decision will be made.

So once again, the investment rule has been confirmed: high risk must be taken to achieve high income.

To learn more about Forex trading follow Educational series HERE

Risk Disclosure (read carefully!)

28th June 2018